1. UKM Learning and Research Repository
2. Master Thesis / Tesis Master
3. Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

Title:	The relationship between energy consumption, carbon emissions and economic growth : case of Turkey and comparison with Malaysia
Authors:	Gojayev Zaur (P48882)
Supervisor:	Tamat Sarmidi, Professor. Dr.
Keywords:	Energy consumption-Turkey
Issue Date:	12-Sep-2013
Description:	Turkey has experienced a significant increase in energy consumption and carbon emissions in recent years, especially after became a full member of the European Union (EU) and is active in production. This will cause Turkey to face a significant pressure to reduce her carbon dioxide emissions. Energy conservation policy is an important policy package for Turkey to reduce carbon dioxide emissions. However, the effect of this policy is less effective because carbon emissions are still high in Turkey and at the same time Turkey experienced an increase in economic growth. It is still unknown that there is any relationship between the high carbon emissions with an increase in economic growth. Thus, the aim of this research is to examine the relationship between carbon dioxide emissions, energy consumption and economic growth. This study also examined the relationship that may exist in the long term and short term between economic growth, carbon emissions, energy consumption by using two control variables, namely variable capital formation and employment in Turkey. Autoregressive distributed lag method of cointegration and error correction model based on Granger cause have been used in this study using time series data between the periods of 1971-2007. The empirical results from this study found that in the long run, energy consumption, CO2 emissions and capital formation variables have a relationship economic growth. However, could not be proved that there is no relationship between the variables in the short term. This is consistent with the findings by using Granger error correction model, which found that only capital formation do Granger cause economic growth in the short-term. The speed of adjustment coefficient to restore equilibrium in the dynamic model has negative sign, and statistically significant at the 1 percent level, ensuring that long-run equilibrium can be attained. The coefficient of -0.356 implies that adjustment to long-run equilibrium values quite fast. Above all, according to the results, energy conservation policies will have adverse effect on economic growth. Therefore, such policies by themselves are not adequate for reducing environmental pollution as the energy consumption reduction may hinder the economic growth. However, it was found that controlling for carbon emissions is likely to have desirable effect on the real output growth of Turkey. Turkey experience is also compared with the experience in Malaysia which is also a fast-growing economy in recent years. The findings from Turkey and Malaysia are different. For Malaysia case, in the long-run only carbon emission and investment significant affected the economic growth. There is no statistically significant relationship between economic growth and the employment and energy consumption. Similar with Turkey case, the capital variable is significance influence the economic growth for Malaysia in the short run. These findings suggest that in the long-run, enhancing the quality of environment and investment stimulates the economic growth in Malaysia but employment policies cannot affect the economic growth of the country. Similar to Turkey, in Malaysia, investment is a significant determinant of the economic growth in the short-run. Future studies should consider the net impact of reducing fossil fuels and increasing the use of alternative fuels on the economic growth.,Master / Sarjana
Pages:	72
Call Number:	HD9502.T9.G614 2013
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.